Rate hikes have spurred a selloff, and the Dow Jones Industrial Average received its worst pummeling since February, dropping more than 800 points today. The NASDAQ tanked more than 300 points, and the S&P 500 fell over 70 points today.
It’s been a tough month for the major indexes with S&P 500 and the Dow down more than 2.7% and 1.6%, respectively. The NASDAQ has lost more than 5.5%.
According to a report from CNBC, rising rate fears are driving investors to pivot out of technology stocks and have dragged the Dow down 900 points over its last five sessions.
Rates rose on Wednesday after the government released data showing a rebound in producer prices last month. According to CNBC, the producer price index rose 0.2% in September and is up 2.8% year-over-year.
"Portfolio managers tend to move to the sidelines in a skittish tape out of fear of suffering from a quick and sharp pullback," FBN Securities Chief Market Strategist Jeremy Klein told CNBC.
"The fundamental environment, though, remains supportive of share appreciation. I contend that the concerns of rising interest rates are largely overblown. Specifically, I do not anticipate much more of an increase in longer dated Treasury yields," he added.
Big losers in this rout have been Amazon (down 4%), Netflix (down 6.3%), Facebook (down 2%) and Apple (down 2%).
"People are getting out of the high-flying tech names right now," The Opportunistic Trader CEO Larry Benedict told CNBC.
"I think people are under-hedged; there could be more pain ahead," he said.